SBI Ripple Asia Announces Japanese Bank Consortium

Aug 19, 2016 | Meghan Elison

Tokyo is a city where everything moves fast— including money. Image: Francisco Diez

SBI Ripple Asia announced the creation of a Japanese consortium of 15 banks in a new network that will use Ripple’s technology for payments and settlement. The consortium emphasized that the new payments platform will enable round-the-clock settlement at a significant savings to both banks and consumers.

Currently, cross-border fees can run up to thousands of yen (or tens of dollars). In the new setup, banks pay about 90% less in fees. Using Ripple’s technology will also provide customers of these banks with real-time domestic and cross-border payments, 365 days of the year.

Ripple announced its joint venture with SBI Holdings —SBI Ripple Asia— early this year. Part of the excitement surrounding that announcement was SBI’s considerable regional influence, which opened the door for the wider adoption of Ripple’s technology across Japan and throughout Asia.

In July, Mizuho Financial Group (MHFG), one of the largest financial groups in Asia, became one of the first Japanese banks to pilot blockchain technology for cross-currency settlement using Ripple.

SBI Ripple Asia projects that the 15 inaugural members will increase the size of the consortium to 30 banks, and that the new service will go live in spring of 2017.